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Oregon Home Inspections
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Oregon Inspection Law
Under
Oregon law, a seller of residential property must deliver a
Property Disclosure Statement to each buyer who makes a written offer to
purchase. Under
ORS
105.475, refusal to provide this form gives the buyer the right to revoke
their offer at any time prior to closing the transaction. Sellers can claim
an exclusion under ORS 105.470, An exclusion may be claimed only if the
seller qualifies for the exclusion under the law.
If not excluded, the seller must disclose the
condition of the property or the buyer may revoke their offer to purchase
anytime prior to closing the transaction. Here are some of the questions
on the statement:
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Are there problems with settling, soil, standing
water or drainage on the property or in the immediate area.
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Does the property contain fill?
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Is there any material damage to the property or any
of the structure(s) from fire, wind, floods, beach movements, earthquake,
expansive soils or landslides?
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Is the property in a designated floodplain?
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Is the property in a designated slide or other geologic
hazard zone?
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Has any portion of the property been tested or treated
for asbestos, formaldehyde, radon gas, lead-based paint, mold, fuel
or chemical storage tanks or contaminated soil or water?
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Are there any tanks or underground storage tanks (e.g.,
septic, chemical, fuel, etc.) on the property?
There are over 50 questions that must be answered.
Oregon Construction Contractors Board
The Oregon government agency responsible for home inspections
is the
Construction Contractors Board (CCB).
Oregon law requires individuals who bid, offer to perform
or perform home inspections of two or more components to be certified by
the Oregon Construction Contractors Board. (Example: an inspection of a
roof, the electrical system and the plumbing system would be three components.)
An individual must pass a comprehensive test to become certified and must
complete continuing education courses to renew his/her certification. Each
certified home inspector must also be an owner or an employee of a business
licensed with the CCB. A home inspection business also needs a contractor’s
license from CCB, which means that the business must
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Obtain and submit a CCB surety bond in the required
amount(s).
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Obtain and provide proof of general liability insurance
in the required amount.
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Provide evidence of worker’s compensation and other
employer account numbers if applicable.
Check a Home Inspection Business To check
a home inspection business, get the business’ license number and the home
inspector certification number (OCHI). Call 503-378-4621 or go on-line at
www.oregon.gov/CCB
to determine if the license and certification are active and if there are
any open complaints filed against the business.
Summary of Oregon Home Inspector Certification Law and
Standards of Practice for Home Inspections The CCB has a six-page
document entitled, Summary of Oregon Home Inspector Certification Law
and Standards of Practice for Home Inspections. It provides a
summary of the rights and responsibilities when having a home inspection
done by an Oregon certified home inspector. Click
here to download.
An Overview of Home Inspections
But what does a home inspection report disclose? Home buyers
are often confused about home construction and its components, and have
difficulty deciphering home inspection reports. How does a home buyer
know how to figure out which types of defects are serious or whether their
home inspector checked all the essentials? Buyers need to discuss
the report and issues with the inspector to ascertain the seriousness of
any issues. Sometimes bringing in an expert on a particular issued
is required. A Realtor's®
willingness to go the extra mile to help the home buyer have
any repairs issues addressed is a good reason to make sure you retain an
experienced Realtor®
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When you get an inspection, you are purchasing an educated
opinion, not a guarantee. Therefore the person doing the inspection
should be a highly qualified person. Most Realtors®
have working relationships with a number of inspectors and their role is
important in the inspection process.
More information about inspections:
Home Warranty
A home warranty is like insuring the appliances at your
house. When appliances or systems (furnace, hot water tank, etc.) breakdown,
the insurance company repairs or replaces the equipment. In most cases,
newer homes do not require home warranty, because appliances and systems
are not likely to replaced and the total cost of all minor repairs is going
to be less than the cost of buying home warranty, in a given year.
You are buying peace of mind. If a major appliance/system
needs to be replaced, someone else pays the bill. Whenever you need
a repair service, you just call the home warranty company and pay your flat
deductible amount (generally around $50), no matter how many hours it would
take to fix the system.
Some consumers have had bad experiences dealing with the
claim processing. Some insurance companies may use clauses to avoid helping
you when the project expenses run high. The most common complaint is that
the insurance company rejects your claims when they decide that you have
not maintained the equipment properly. Occasionally, a home warranty company
will try to repair, not to replace the system. That means you will have
to live with the inefficiencies of the old system, plus you keep paying
deductibles every time it needs a repair. Always remember, most of the contracts
do not cover system or appliance failures due to lack of maintenance. There
are many reputable home warranty companies that provide excellent service.
The cost of a home warranty is between $450-$1,000.
They usually are good for one year after which they can be renewed.
Depending upon the market, many sellers offer a home warranty as in incentive.
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General Inspection: Step One
in the Process

The modern home inspector uses a variety of tools to include
a computer in which the home owner report is generated. Many carry
a laptop to the site and enter the information on the laptop whereas other
rely on a "pen/pencil" at the site and enter the information into the computer
at their office.
Other instruments that inspectors may carry include a moisture
meter, portable combustible gas leak detector, analog or digital metal shaft
thermometer, and flame meter.
Checklist for General Inspection
Below are the checklist standards of practice established
for a general inspection by the
National Association of
Certified Home Inspectors:
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Structural Elements: Construction of walls,
ceilings, floors, roof and foundation.
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Exterior: Wall covering, landscaping, grading,
elevation, drainage, driveways, fences, sidewalks, fascia, trim, doors,
windows, lights and exterior receptacles.
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Roof and Attic: Framing, ventilation, type of
roof construction, flashing and gutters. It does not include a guarantee
of roof condition nor a roof certification.
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Plumbing: Identification of pipe materials used
for potable, drain, waste and vent pipes. including condition. Toilets,
showers, sinks, faucets and traps. It does not include a sewer inspection.
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Systems and Components: Water heaters, furnaces,
air conditioning, duct work, chimney, fireplace and sprinklers.
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Electrical: Main panel, circuit breakers, types
of wiring, grounding, exhaust fans, receptacles, ceiling fans and light
fixtures.
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Appliances: Dishwasher, range and oven, built-in
microwaves, garbage disposal and, yes, even smoke detectors.
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Garage: Slab, walls, ceiling, vents, entry, firewall,
garage door, openers, lights, receptacles, exterior, windows and roof.
A wood destroying organism (WDO) report (sometimes called
a pest and dry rot) is often included in Oregon. Usually not included are
septic systems, wells, underground piping, swimming pools and other items
that are not considered part of the main structure.
Other Inspections to Consider
The results of the general inspection will trigger whether
specialized inspections (e.g., underground storage tank, sewer, radon, etc.)
are necessary. The age of a home will also determine whether a specialized
inspection may be needed. For example, it is the practice of most
Realtors®
to have a sewer inspection done.
Most Realtors®
will advise their clients about other inspections that may
be needed and help them find qualified inspectors for these special inspections.
Here is a list of specialized inspections that a home buyer should consider,
depending upon the house and location:
Wells
If the domestic water is supplied by a well, then promptly
after the seller’s acceptance and pursuant to ORS 448.271, the seller shall
have the well tested for nitrates and coliform bacteria and submit the test
results to the home buyer and the Oregon Department of Human Services. In
addition, the home buyer should verify whether the well has been registered
with the Oregon Water Resources Department, as required by Oregon law. The
home buyer may be well advised to have other tests performed on the well
such as: arsenic, lead, extended contaminants, test (“top 20”), well flow
test. The well flow test is performed by a licensed well tester to
measure the volume of water produced from the well used for domestic purposes.
Typically, well flow tests are four hours in length.
Radon
The average level of radon in Oregon houses is above the
hazardous level in at least 26 zip codes scattered across the state, according
to test results posted
online by health officials.
Odorless, invisible radon is a radioactive gas that seeps into buildings
from the surrounding earth. It's the second leading cause of lung cancer
in the U.S. after smoking and it is the leading cause among non-smokers.
At radon levels above 4 pCi/L, the U.S. Environmental Protection Agency
says mitigation is definitely warranted.
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Common Specialized Inspection
Below is information about three of the more common specialized
inspections that Portland area Realtors®
are likely to encounter on homes.
Sewer Inspection
The
time to find out if a sewer is faulty or needs replacement is before
buying a home, not after the fact. Therefore many Realtors®
recommend to their buyers that they obtain a sewer inspection.
This includes new homes since sewer inspectors have told me that they have
found broken lines in new subdivisions. The primary cause is heavy
duty construction equipment being used at the site after the sewer lines
are installed. The cost for a sewer scope is $125-$150 and this minor
investment could save you thousands of dollars of repair.
Many Realtors®
recommend sewer scopes if the home is older than 30 years. If certain
conditions are present in homes newer than 30 years such as numerous trees
along the sewer line, they also recommend an inspection since the tree roots
can still clog up a newer sewer line.
A sewer inspection is performed by inserting a camera into
the sewer line so we can view and record the condition of the line - a CD
of the findings can be viewed on most computers. If a problem is found,
the location of the damage can be pinpointed to include the depth.
Most sewer inspectors specialize in just inspections, and
they do not offer repair service. That is a another skill set requiring
equipment, etc.
Underground Storage Tanks
A
primary environmental concern for buyers and sellers is the presence
of hazardous substances, including petroleum from underground heating
oil storage tanks (USTs) and indoor pollutants. Steps should be
taken to determine whether a tank exists and, if so, whether decommissioning
and/or clean up are required.
The current Oregon Heating Oil Tank (HOT) program started
on March 15, 2000. This program allows third party certification of
cleanups and decommissioning of heating oil tanks by the Oregon Department
of Environmental Quality (DEQ) licensed service providers. When a licensed
contractor completes a cleanup or decommissioning, the company submits
a certification to DEQ. Then DEQ will then issue a letter to the tank
owner registering the contractor's certification. The combination of
the contractor's certification and DEQ's registration is equivalent
to the "No Further Action" letter that the DEQ used to issue.
It is legal for a homeowner to clean up soil and groundwater
from a HOT release and to decommission their HOT, assuming they perform
the work themselves and comply with all applicable local, state and
federal rules. It is not legal to complete the work by serving as a
general contractor and hiring subcontractors to complete portions of
the job. To do so transfers liability for improper work by the subcontractors
to the homeowner.
According to DEQ, there are approximately 210,000 residential
underground heating oil storage tanks in the State of Oregon. DEQ says
there are approximately 60,000 underground heating oil tanks still in
use and 150,000 that have been abandoned, i.e., not properly decommissioned.
Many of these tanks still contain fuel, and therefore pose potential
environmental liability. Statistically 60-70% of underground heating
oil tanks on record have leaked some product into the soil.
The rules and regulations about oil tanks are complicated.
If you purchase a home where an underground storage tank exists (average
life of a tank is 25 years) and you were unaware of the tank when you
purchased the home, you can undergo considerable financial expense if
the tank begins to leak when you are the home owner or should you decide
to sell it later. Make certain your Realtor understands how this
issue is addressed when purchasing a home in Oregon.
Since January, 2009, the Oregon DEQ adopted the federal
standards for naphthalene and ethylbenzene, common compounds found in
home heating oil. Naphthalene and ethylbenzene weren't included because
they weren't considered carcinogens, until the EPA reclassified them
in late 2008. Don Francis, an environmental consultant and general manager
at EcoTech,
was quoted as saying a quick look at a handful of his projects certified
under the old standard showed that most would require soil removal under
the new rules. This could double the cost of removing a tank.
You will want to view the DEQ's
Heating Oil Tank publications for further information. Of
particular interest are Guidance for Contractors and Homeowners
found at this link:
http://www.deq.state.or.us/lq/tanks/hot/guidance.htm.
Mold
Mold
is a very common problem in Western Oregon (especially the Portland
metro area and Willamette Valley) due to the rain. But homes in Eastern
Oregon can also develop mold problems. The fear of mold lawsuits has
mushroomed, popularizing the slogan "mold is gold" among lawyers and
driving up the demand for laboratories that test for toxic mold. As
a result, mold paranoia has grown.
It's more difficult to eliminate mold than, say, asbestos,
many experts say. Unlike asbestos, mold is a living organism. With mold,
you can take out 99.999 percent of the particles, and the .001 percent,
that little particle that does survive, is likely to come back. Any
indoor air or dust sample will likely contain fungal life according
to mycologists but that doesn't mean every building has, or will develop,
a mold problem. Fungal spores are ubiquitous. Fungi are not ubiquitous.
It's much easier instead to deprive mold of its preferred
habitat: The way to control indoor mold growth is to control moisture.
Jack Levy, who manages
Smith Freed & Eberhard's construction defect group, spoke at a seminar
held at the World Trade Center in Portland in early 2009 and offered
some tips for developers and builders looking to defend themselves against
litigation, or, better yet, to avoid litigation altogether.
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First, don't wait until trades people and subcontractors
are on site to address water intrusion issues. Get the architects
involved," Levy said. "Spend the money up front on that detailing."
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Tearing out siding to install flashing, for example,
wastes time and money. "If you're looking to save money," Levy said,
"the envelope is not the area to be saving any costs."
Exterior Insulation and Finish Systems (EIFS)
The EIFS product is also called synthetic stucco, and
refers to a multi-layered exterior finish that's been used in European
construction since shortly after World War II, when contractors found
it to be a good repair choice for buildings damaged during the war.
The majority of repairs to European buildings were to structures constructed
of stone, concrete, brick, or other similar, durable materials.
EIFS in North America North American builders
began using EIFS in the 1980's, first in commercial buildings, then
applying it as an exterior finish to residences−mostly
wood frame houses−using the same techniques
that had been successful in Europe. EIFS layers bond to form a covering
that doesn't breathe. That's fine when no moisture is present behind
the covering, but if moisture seeps in it can become trapped behind
the layers. With no place to go, constant exposure to moisture can lead
to rot in wood and other vulnerable materials within the home. What
had worked well as an exterior shell for concrete and stone became a
problem when used on wood. Newer EIFS systems include a drainage
arrangement to help keep moisture from being trapped behind the covering.
Signs of Mold Problems
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Mold or mildew on the interior or exterior of
the home.
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Blistered or peeling paint.
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Cracked EIFS or cracked sealant.
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Swollen wood around door and window frames.
Many of the newer stucco homes in the Portland metro
area used EIFS in their construction, and therefore it is important
to have a thorough mold/moisture inspection when purchasing an EIFS
home.
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Resources
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Construction Contractors
Board (CCB) The CCB is a state agency that protects consumers
by regulating construction contracting businesses. Find a licensed contractor
through their web site.
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Home
Builders Association of Metropolitan Portland The HBA is a
trade association for the building industry. Their web site provides
consumer information on choosing a builder or remodeler.
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Oregon Association
of Home Inspectors A regional chapter of America's largest
and most recognized organization for home inspectors, this site offers
consumers information on home inspections,
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Oregon Department
of Environmental Quality (DEQ) DEQ is responsible for
protecting and enhancing Oregon's water and air quality, for cleaning
up spills and releases of hazardous materials, for managing the proper
disposal of hazardous and solid wastes, and for enforcing Oregon's environmental
laws.
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Oregon State Bar Lawyer Referral Service The Oregon State
Bar can refer you to a lawyer who specializes in real estate matters.
The referral service is available Monday through Friday, 9:00 a.m.
to 5:00 p.m., at 1-800-452-7636.
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